BOARD02441

• Board Meeting Date: 3/26/2001
• Description: ISF Section - Donation Water Division 7 - Carbon Lake Ditch
• Board Meetings - Doc Type: Memo

260

Agenda Item 21
March 26-27, 2001
page 2

4

The San Juan Resources Conservation and Development Council, in cooperation with the ARSG,
is proposing to purchase at least 80% of the water rights il) the Carbon Lake Ditch, (The remaining shares
will need to piped across the mine complex.) The Council: is Offering to donate the purchased water rights
to the Board to eliminate the source of acid mine drainage. and to restore the natural hydrological regime
in the Big Hom Gulch and Mineral Creek (North Fork) drainages. The Council has been awarded a
$50,000 remediation grant from the Colorado Department of Public Health and Envirorunent, unper the
Colorado Non-Point Source (319) Program, to purchase the water rights. The Council expects to close
the purchase on April 20, 2001 contingent upon commitment from at least 80% of the ditch owners and
acceptance of the donation by the Board,

Summarv of ProDosal

The Council is requesting that the Carbon Lake Ditch water right be dedicated to instream flow use in
three segments of stream:

. Big Horn Gulch - from the decreed location ofHeadgjlte #1 downstream to the confluence with the
Mineral Creek (North Fork), a distance of 1.39 miles

· the unnamed tributary to Big Horn Gulch - from the decreed location of Headgate #2 downstream to
the confluence with Big Horn Gulch, a distance of 0.44 mile, and

· Mineral Creek (North Fork) - from the confluence with Big Horn Gulch downstream to the
confluence with the South Fork of Mineral Creek, a distance of 4.62 miles.

The Board does not currently hold instream flow water rights on any of these stream segments. Staff
has contacted the Division 7 Engineer and the Water Commissioner, and has obtained records to confirm
historic diversions. Staffhas also contacted local Divisiort of Wildlife personnel and confirmed that there
is a natural environment that can be protected with this donation.

The following documents are attached for the Board's:information: I) a letter from Southwestern
Water Conservation District in support of the Carbon Lak~ Donation, 2) a proposed resolution by the San
Juan Resources Conservation and Development Council to purchase the Carbon Lake Ditch and donate
the water right to the Board, and 3) a draft Donation Agre~rnent between the Board and the Council.

The Donation Agreement contemplates conveyance of the Carbon Lake Ditch to the Board for
instream flow use to preserve the natural envirOlunent in the above-mentioned stream segments. The
Agreement also requires the Board to file a change of water right application with the court within a
reasonable amount oftime.

Staff Recommendation

Staff recommends that the Board accept the proffered right and ratify the attached Donation
Agreement. Staff further recommends that the Board autUorize the Director to sign the Agreement on the
Board's behalf.